A look at the Healthcare and Life Sciences Investment Outlook for 2025

In KPMG’s 2025 Healthcare and Life Sciences Investment Outlook, we found that most leading hospital and health systems across different countries were in good positions in 2024 compared to 2023, thanks to reimbursement increases, lower interest rates, and more staffing stability.

- MICHAEL ARCATOMY H. GUARIN

Larger institutions pursued acquisitions and partnerships, expanded offerings, and invested in efficiencies; financial investors remained mostly on the sidelines, given the industry's margin challenges and capital requirements. We expect more deals as struggling institutions reach for lifelines, and regulators look more favorably on large acquirers growing scale and share across regions and service lines.

Healthcare services continued to attract strategic and financial buyers in 2024, but deal volume was low, partly in response to changing reimbursement schedules. We expect plenty of smaller to medium-sized transactions in 2025 in this broad category, which includes physicians’ practices and other non-hospital providers. Financial and strategic investors will continue to seek assets in the space to gain capabilities or expertise, such as in value-based payments; expand networks or services in networks; or merge with other providers to gain scale advantages.